Calavo Growers, Inc. (NASDAQ:CVGW) stock rose 7.55% (As on Dec 21, 11:50:31 AM UTC-4, Source: Google Finance) after the company in the fourth quarter of FY 21 has reported 17% rise in the total revenue to $273.4 million. Fresh segment revenue increased 26% year-over-year to $149.8 million, and Renaissance Food Group (RFG) and Foods segments revenues increased 7% and 6% year-over-year, respectively. The company has delivered gross profit of $9.1 million, or 3.3% of revenue, compared to $21.2 million, or 9.0% of revenue, for the year-ago quarter. The company posted net loss of $(13.0) million, or $(0.73) per share, compared to net income of $6.2 million, or $0.35 per diluted share, for the same period last year. Adjusted net loss was $(1.4) million, or $(0.08) per share for the fourth quarter of FY 21, compared to adjusted net income of $6.0 million, or $0.34 per diluted share last year. The company delivered Adjusted EBITDA of $1.4 million for the fourth quarter of FY 21 compared to $13.4 million for the same period last year.

Meanwhile, during the fourth quarter of FY 21, the company made headway with Project Uno, a profit improvement project with initial focus on pricing initiatives, SKU rationalization, plant optimization and unified procurement, freight and back-office activities across all business units. The company continued strengthening supply chain and adjusting for the prolonged COVID-19 pandemic. The company had appointed Mariela Matute to Chief Financial Officer role and Graciela Montgomery as first Chief Human Resources Officer. Additionally, the company has declared an annual cash dividend of $1.15 per share on common stock, consistent with the prior year’s annual dividend.

On the other hand, in the fourth quarter, the company saw a continuation of the challenging market conditions it had experienced in the third quarter including inflationary effects on labor, raw materials and freight. The company also continued to experience challenges with the avocado crop, including high fruit costs and less desirable sizes. As the company moved through the fourth quarter, market conditions improved, and the company obtained price increases across customers and product lines.

Furthermore, as part of Project Uno, the company made the difficult decision to discontinue food processing operations at the RFG facility in Green Cove Springs (near Jacksonville), Florida. While the company is continuing the Fresh operations at the facility, the closure will consolidate production into the Georgia facility and improve the capacity utilization.